FAR 1 Chapter - 8
FAR 1 Chapter - 8
FAR 1 Chapter - 8
Problem 8-2
Oct 1 Cash 3,600,000
Discount on Notes Payable 400000
Notes Payable 4,000,000
SFP:
Current Liabilities:
Notes Payable 4,000,000
Discount on Notes Payable (300,000.00)
Carrying Amount 3,700,000
Notes to F/S:
Notes Payable - Bank
Accounts Receivable of Php5,000,000 are pledged to secure the
Php4,000,000 bank loan.
Problem 8-3:
May 1 A/R - Assigned 800,000
A/R 800,000
Cash 620,000
Service Charge 20,000
N/P 640000
5 SRA 30,000
A/R - Assigned 30,000
10 Cash 490,000
Sales Discount 10000
A/R - Assigned 500,000
7 AFDA 10,000
A/R - Assigned 10,000
20 Cash 200,000
A/R - Assigned 200,000
A/R 60,000
A/R - Assigned 60,000
Problem 8-4
Jul 1 A/R - Assigned 1,500,000
A/R 1,500,000
Cash 1065000
Service Charge 60000
Notes Payable - Bank 1125000
A/R - Assigned
Jul 1 assigned 1,500,000
Aug 1 collection -800,000
Sep 1 collection -500,000
A/R-Assigned to be returned by bank 200,000
A/R 200,000
A/R - Assigned 200,000
Problem 8-5
Jul 1 A/R - Assigned 500,000
A/R 500,000
Cash 390,000
Service Charge 10000
N/P - Bank 400,000
Problem 8-6
Dec 1 A/R - Assigned 1,500,000
A/R 1,500,000
Cash 1,250,000
Service Charge 50,000
N/P - Bank 1,300,000
Requirement 2:
A/R Assigned 500,000 Asset Current Asset Trade Receivable
A/R - Unassigned Trade and Other Receivable line item
A/R - Assigned
Total
Less: AFDA
Net Realizable Value
N/P Bank 343,000 Liability Less than 1 year Notes Payable - Bank
Current Liability None-Trade
A=L+E
Problem 8-7
Jul 1 A/R - Assigned 800,000
A/R 800,000
Cash 616000
Service Charge 24000
Notes Payable - Bank 640000
A/R 60,000
A/R -Assigned 60,000
Problem 8-8
1 Cash 4,500,000
Loss on Factoring 700,000
Receivable from Factor 600000 Current Asset, Other Receivables
Allowance for Doubtful Accounts 200,000
A/R 6,000,000
Commission 900000
AFDA -200,000
700000
Proceeds to Received:
A/R 6,000,000
Less: Commission 900000
Factor's Holdback 600000
4,500,000
2 Cash 600,000
Receivable from Factor 600,000
Problem 8-9
Jul 1 Net Selling Price:
A/R 800,000
Less: Factoring Fee 40000
760,000
Loss on Factoring:
NRV = A/R 800,000
Net Selling Price 760,000
Loss on Factoring 40,000
Cash Proceeds:
A/R 800,000
Factoring Fee 40000
Factor's Holdback 80000
680,000
Jul 1 Cash 680,000
Loss on Factoring 40,000
Receivable from Factor 80000
A/R 800,000
Problem 8-10
Jun 1 A/R 500,000
Sales 500,000
3 Cash 340,000
Loss on Factoring/Service Charge 25000
Receivable from Factor 125000
Sales Discount 10000
A/R 500,000
9 SRA 50,000
Sales Discount 1000
Receivable from Factor 49,000
11 No Entry
15 Cash 76,000
Receivable from Factor 76,000
Problem 8-11
Jul 26 Cash 750,000
Loss on Factoring / Commission Expense 50000
Receivable from Factor 200000
A/R 1,000,000
Problem 8-12
Jun 30 Cash 150,000
Loss on Factoring / Service Charge 10000
Receivable from Factor 40000
A/R 200,000
Cash 225000
Service Fee 15000
Notes Payable 240000
DAE 35,000
AFDA 35,000
Requirement 4:
A/R Unassigned 1,000,000
A/R Assigned 300,000
Total 1,300,000
Less: AFDA 65000
NRV 1,235,000
Current Asset; Trade Receivable; part of the line item Trade and Other Receivables
Problem 8-13:
Motorway Book (Borrower) Freeway Book (Factor or Creditor)
Dec 1
Cash 2,250,000 A/R 3,000,000
Receivable from Factor 300000 Commission Inc. 450000
AFDA 100,000 Clients Retainer 300000
Loss on Factoring 350000 Cash 2,250,000
A/R 3,000,000
Commission 450000
AFDA -100000
Loss on Factoring 350000
Dec 31
Collection of A/R
No Entry Cash 2,500,000
A/R 2,500,000
A/R 3,000,000
Collection -2500000
Balance 500,000
x 10%
Required Balance of
Retainer 50000
Balance of Retainer 300000
Remittance 250000
DAExpense 20000
AFDA 20000